Published on 12/31/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.22 million trigger autocallable optimization notes on Euro Stoxx 50
By Wendy Van Sickle
Columbus, Ohio, Dec. 31 – HSBC USA Inc. priced $6.22 million of 0% trigger autocallable optimization securities due Dec. 31, 2020 linked to the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
Beginning in December 2016, the notes will be called at par of $10 plus a call return of 8% per year if the index closes at or above the initial level on any quarterly observation date.
If the notes are not called and the index finishes at or above the trigger level, 62% of the initial index level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial level.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is acting as agent.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable optimization securities
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Underlying index: | Euro Stoxx 50
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Amount: | $6,223,900
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Maturity: | Dec. 31, 2020
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If notes are not called and index finishes at or above trigger level, par; otherwise, 1% loss for every 1% that final index level is less than initial level
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Call: | Beginning on Dec. 28, 2016, notes will be called at par plus call return of 8% per year if index closes at or above initial level on any quarterly observation date
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Initial index level: | 3,314.28
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Trigger level: | 2,054.85, 62% of initial level
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Pricing date: | Dec. 29
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Settlement date: | Dec. 31
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | UBS Financial Services Inc.
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Fees: | 2.5%
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Cusip: | 40434K313
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